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The Tax PublishersTax Case (Appeal) No. 862 of 2005
2019 TaxPub(DT) 1585 (Mad-HC)INCOME TAX ACT, 1961
Section 147
Where Revenue failed to furnish reasons for reopening of assessment, despite request being made by assessee, such re-assessment proceedings would be liable to be quashed.
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Reassessment - Validity - Issuance of notice under section 143(2) after expiry of 12 months from the end of month of filing of return -
Issue under consideration was whether re-assessment/re-opening proceedings under section 147, without issuing notice under section 143(2), within 12 months from the end of month of filing of return, would be considered valid or not. Held: Though notice under section 143(2) was issued after expiry of 12 months from the end of month of filing of return but before the expiry of time-limit for making the assessment, reassessment or re-computation, in view of proviso to section 148, such notice would deem to be valid notice and consequently, assessments completed under section 143(3) read with sections 147 and 148 were also valid. Therefore, the question of law would be in favour of Revenue. But, the subject case was decided in favour of assessee, on the merits of matter, inasmuch as reasons for re-opening were not furnished inspite of request made by deceased assessee. Hence, re-assessment proceedings were quashed on the ground of non-furnishing of reasons for re-opening of assessment and also taking note of the monetary limit involved in appeal, which was less than Rs. 2 lakhs.
< b>Followed:CIT v. C. Palaniappan (2011) 241 CTR 207 (Mad) : 2011 TaxPub(DT) 1614 (Mad-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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